This is a compilation of the A New Tax System (Goods and Services Tax) Act 1999 that shows the text of the law as amended and in force on 1 October 2019 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

79‑20..................... Extension of various references in Division 78 to rights of subrogation to cover other rights of recovery........................................................................................ 303

Subdivision 79‑B—Extension of Division 78 to cover certain compulsory third party scheme payments and supplies connected with, but not under, insurance policies304

93‑1....................... What this Division is about............................................. 374

93‑5....................... Time limit on entitlements to input tax credits................. 374

93‑10..................... Exceptions to time limit on entitlements to input tax credits 374

93‑15..................... GST no longer able to be taken into account................... 376

Division 96—Supplies partly connected with the indirect tax zone377

96‑1....................... What this Division is about............................................. 377

96‑5....................... Supplies that are only partly connected with the indirect tax zone 377

96‑10..................... The value of the taxable components of supplies that are only partly connected with the indirect tax zone........................................................................................ 378

Division 99—Deposits as security379

99‑1....................... What this Division is about............................................. 379

99‑5....................... Giving a deposit as security does not constitute consideration 379

99‑10..................... Attributing the GST relating to deposits that are forfeited etc. 379

Division 100—Vouchers380

100‑1..................... What this Division is about............................................. 380

100‑5..................... Supplies of vouchers with a stated monetary value......... 380

(a) will introduce legislation to provide that the revenue from the GST will be granted to the States, the Australian Capital Territory and the Northern Territory; and

(b) will maintain the rate and base of the GST in accordance with the Agreement on Principles for the Reform of Commonwealth‑State Financial Relations endorsed at the Special Premiers’ Conference in Canberra on 13 November 1998.

The *GST law binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not make the Crown liable to be prosecuted for an offence.

(1) Many of the terms used in the law relating to the GST are defined.

(2) Most defined terms in this Act are identified by an asterisk appearing at the start of the term: as in “*enterprise”. The footnote that goes with the asterisk contains a signpost to the Dictionary definitions starting at section 195‑1.

In addition to the operative provisions themselves, this Act contains other material to help you identify accurately and quickly the provisions that are relevant to you and to help you understand them.

One category is the explanatory section in many Divisions. Under the section heading “What this Division is about”, a short explanation of the Division appears in boxed text.

Explanatory sections form part of this Act but are not operative provisions. In interpreting an operative provision, explanatory sections may only be considered for limited purposes. They are set out in section 182‑10.

The other category consists of material such as notes and examples. These also form part of the Act. They are distinguished by type size from the operative provisions (except for formulas), but are not kept separate from them.

(e) a creation, grant, transfer, assignment or surrender of any right;

(f) a *financial supply;

(g) an entry into, or release from, an obligation:

(i) to do anything; or

(ii) to refrain from an act; or

(iii) to tolerate an act or situation;

(h) any combination of any 2 or more of the matters referred to in paragraphs (a) to (g).

(3) It does not matter whether it is lawful to do, to refrain from doing or to tolerate the act or situation constituting the supply.

(3A) For the avoidance of doubt, the delivery of:

(a) livestock for slaughtering or processing into *food; or

(b) game for processing into *food;

under an arrangement under which the entity making the delivery only relinquishes title after food has been produced, is the supply of the livestock or game (regardless of when the entity relinquishes title). The supply does not take place on or after the subsequent relinquishment of title.

(4) However, supply does not include:

(a) a supply of *money unless the money is provided as *consideration for a supply that is a supply of money or *digital currency; or

(b) a supply of digital currency unless the digital currency is provided as consideration for a supply that is a supply of digital currency or money.

(a) any payment, or any act or forbearance, in connection with a supply of anything; and

(b) any payment, or any act or forbearance, in response to or for the inducement of a supply of anything.

(2) It does not matter whether the payment, act or forbearance was voluntary, or whether it was by the *recipient of the supply.

(2A) It does not matter:

(a) whether the payment, act or forbearance was in compliance with an order of a court, or of a tribunal or other body that has the power to make orders; or

(b) whether the payment, act or forbearance was in compliance with a settlement relating to proceedings before a court, or before a tribunal or other body that has the power to make orders.

(2B) For the avoidance of doubt, the fact that the supplier is an entity of which the *recipient of the supply is a member, or that the supplier is an entity that only makes supplies to its members, does not prevent the payment, act or forbearance from being consideration.

(a) the consideration for the supply of the thing on the exercise of the right or option is limited to any additional consideration provided either for the supply or in connection with the exercise of the right or option; or

(b) if there is no such additional consideration—there is no consideration for the supply.

(2) Making a gift to a non‑profit body is not the provision of consideration.

(3) A payment is not the provision of consideration if:

(a) the payment is made by a *government related entity to another government related entity for making a supply; and

(b) the payment is:

(i) covered by an appropriation under an *Australian law; or

(ii) made under the National Health Reform Agreement agreed to by the Council of Australian Governments on 2 August 2011, as amended from time to time; or

(iii) made under another agreement entered into to implement the National Health Reform Agreement; and

(c) the payment is calculated on the basis that the sum of:

(i) the payment (including the amounts of any other such payments) relating to the supply; and

(ii) anything (including any payment for any act or forbearance) that the other government related entity receives from another entity in connection with, or in response to, or for the inducement of, the supply, or for any other related supply;

does not exceed the supplier’s anticipated or actual costs of making those supplies.

(4) A payment is not the provision of consideration if the payment is made by a *government related entity to another government related entity and the payment is of a kind specified in regulations made for the purposes of this subsection.

(c) on a regular or continuous basis, in the form of a lease, licence or other grant of an interest in property; or

(d) by the trustee of a fund that is covered by, or by an authority or institution that is covered by, Subdivision 30‑B of the *ITAA 1997 and to which deductible gifts can be made; or

(da) by a trustee of a *complying superannuation fund or, if there is no trustee of the fund, by a person who manages the fund; or

(e) by a charity; or

(g) by the Commonwealth, a State or a Territory, or by a body corporate, or corporation sole, established for a public purpose by or under a law of the Commonwealth, a State or a Territory; or

(h) by a trustee of a fund covered by item 2 of the table in section 30‑15 of the ITAA 1997 or of a fund that would be covered by that item if it had an ABN.

(2) However, enterprise does not include an activity, or series of activities, done:

(a) by a person as an employee or in connection with earning *withholding payments covered by subsection (4) (unless the activity or series is done in supplying services as the holder of an office that the person has accepted in the course of or in connection with an activity or series of activities of a kind mentioned in subsection (1)); or

Note: Acts done as mentioned in paragraph (a) will still form part of the activities of the enterprise to which the person provides work or services.

(b) as a private recreational pursuit or hobby; or

(c) by an individual (other than a trustee of a charitable fund, or of a fund covered by item 2 of the table in section 30‑15 of the ITAA 1997 or of a fund that would be covered by that item if it had an ABN), or a *partnership (all or most of the members of which are individuals), without a reasonable expectation of profit or gain; or

(d) as a member of a local governing body established by or under a *State law or *Territory law (except a local governing body to which paragraph 12‑45(1)(e) in Schedule 1 to the Taxation Administration Act 1953 applies).

(3) For the avoidance of doubt, the fact that activities of an entity are limited to making supplies to members of the entity does not prevent those activities:

(a) being in the form of a *business within the meaning of paragraph (1)(a); or

(b) being in the form of an adventure or concern in the nature of trade within the meaning of paragraph (1)(b).

(4) This subsection covers a *withholding payment covered by any of the provisions in Schedule 1 to the Taxation Administration Act 1953 listed in the table.

(1) A supply of goods is connected with the indirect tax zone if the goods are delivered, or made available, in the indirect tax zone to the *recipient of the supply.

Supplies of goods from the indirect tax zone

(2) A supply of goods that involves the goods being removed from the indirect tax zone is connected with the indirect tax zone.

Supplies of goods to the indirect tax zone

(3) A supply of goods that involves the goods being brought to the indirect tax zone is connected with the indirect tax zone if the supplier imports the goods into the indirect tax zone.

(3A) A supply of goods that is an *offshore supply of low value goods is connected with the indirect tax zone if it is connected with the indirect tax zone under Subdivision 84‑C.

Supplies of real property

(4) A supply of *real property is connected with the indirect tax zone if the real property, or the land to which the real property relates, is in the indirect tax zone.

Supplies of anything else

(5) A supply of anything other than goods or *real property is connected with the indirect tax zone if:

(a) the thing is done in the indirect tax zone; or

(b) the supplier makes the supply through an *enterprise that the supplier *carries on in the indirect tax zone; or

(c) all of the following apply:

(i) neither paragraph (a) nor (b) applies in respect of the thing;

(ii) the thing is a right or option to acquire another thing;

(iii) the supply of the other thing would be connected with the indirect tax zone; or

(d) the *recipient of the supply is an *Australian consumer.

Example: A holiday package for a trip to Queensland that is supplied by a travel operator in Japan will be connected with the indirect tax zone under paragraph (5)(c).

Note: A supply that is connected with the indirect tax zone under this subsection might be GST‑free if it is consumed outside the indirect tax zone: see section 38‑190. For more rules about supplies that are GST‑free, see Division 38.

Supplies of goods involving installation or assembly services

(6) If a supply of goods (other than a *luxury car) (the actual supply) involves the goods being brought to the indirect tax zone and the installation or assembly of the goods in the indirect tax zone, then the actual supply is to be treated as if it were 2 separate supplies in the following way:

(a) the part of the actual supply that involves the installation or assembly of the goods in the indirect tax zone is to be treated as if it were a separate supply of a thing done in the indirect tax zone;

(b) the remainder of the actual supply is to be treated as if it were a separate supply of goods involving the goods being brought to the indirect tax zone but not involving the installation or assembly of the goods.

Supply of things used solely in connection with making supplies that are input taxed but not financial supplies

(4) A supply is taken to be a supply that is *input taxed if it is a supply of anything (other than *new residential premises) that you have used solely in connection with your supplies that are input taxed but are not *financial supplies.

(a) so far as the *consideration for the supply is consideration expressed as an amount of *money—the amount (without any discount for the amount of GST (if any) payable on the supply); and

(b) so far as the consideration is not consideration expressed as an amount of money—the *GST inclusive market value of that consideration.

Example: You make a taxable supply by selling a car for $22,000 in the course of carrying on an enterprise.

The value of the supply is:

The GST on the supply is therefore $2,000 (i.e. 10% of $20,000).

(2) However, if the taxable supply is of a *luxury car, the value of the taxable supply is as follows:

where:

luxury car tax value has the meaning given by section 5‑20 of the A New Tax System (Luxury Car Tax) Act 1999.

(3) In working out under subsection (1) the value of a *taxable supply made in a *tax period, being a supply that is a *fringe benefit, the price is taken to be the sum of:

(a) to the extent that, apart from this subsection, paragraph(a) of the definition of price in subsection (1) would be applicable:

(i) if the fringe benefit is a car fringe benefit—so much of the amount that would be worked out under that paragraph as represented the *recipient’s payment made in that period; or

(ii) if the fringe benefit is a benefit other than a car fringe benefit—so much of the amount that would be worked out under that paragraph as represented the *recipients contribution made in that period; and

(b) to the extent that, apart from this subsection, paragraph(b) of the definition of price in subsection (1) would be applicable:

(i) if the fringe benefit is a car fringe benefit—so much of the amount that would be worked out under that paragraph as represented the recipient’s payment made in that period; or

(ii) if the fringe benefit is a benefit other than a car fringe benefit—so much of the amount that would be worked out under that paragraph as represented the recipients contribution made in that period.

(4) Despite subsection (1), if a supply of goods (the actual supply) is to be treated as separate supplies because of subsection 9‑25(6) or 84‑79(2), then the price of each such separate supply is so much of the price of the actual supply, worked out under subsection (1), as reasonably represents the price of the separate supply.

(1) If the amount of GST on a *taxable supply that is the only taxable supply recorded on a particular *invoice would, apart from this section, be an amount that includes a fraction of a cent, the amount of GST is rounded to the nearest cent (rounding 0.5 cents upwards).

Several taxable supplies recorded on an invoice

(2) If 2 or more *taxable supplies are recorded on the same *invoice, the total amount of GST on the supplies is:

(a) what would be the amount of GST if it were worked out by:

(i) working out the GST on each of the supplies (without rounding the amounts to the nearest cent); and

(ii) adding the amounts together and, if the total is an amount that includes a fraction of a cent, rounding it to the nearest cent (rounding 0.5 cents upwards); or

(b) the amount worked out using the following method statement:

Method statement

Step 1. Work out, for each *taxable supply, what would, apart from this section, be the amount of GST on the supply.

Step 2. If the amount for the supply has more decimal places than the number of decimal places allowed by the accounting system used to work out the amount, round the amount (up or down as appropriate) to that number of decimal places.

Note: Subsection (4) gives further details of this rounding.

Step 3. Work out the sum of the amounts worked out under step 1 and (if applicable) step 2 for each supply.

Step 4. If the sum under step 3 includes a fraction of a cent, round the sum to the nearest cent (rounding 0.5 cents upwards).

(3) Whether to use paragraph (2)(a) or paragraph (2)(b) to work out the total amount of GST on the supplies is a matter of choice for:

(a) the supplier if the amount is being worked out to ascertain the supplier’s liability for GST; or

(b) the *recipient of the supplies if the amount is being worked out to ascertain the recipient’s entitlement to input tax credits.

(4) In applying step 2 of the method statement in subsection (2), if:

(a) the number of decimal places in the amount for the supply exceeds by one decimal place the number of decimal places allowed by the accounting system used to work out the amount; and

(b) the last digit of the amount (before rounding) is 5;

the amount is rounded upwards to that number of decimal places.

Taxable supplies divided into items

(5) If one or more *taxable supplies recorded on the same *invoice are divided into 2 or more items:

(a) subsection (1) does not apply; and

(b) subsection (2) applies as if each such item represented a separate taxable supply.

Taxable supplies recorded on documents other than invoices

(6) If one or more *taxable supplies, none of which are recorded on an *invoice, are recorded on a document that is not an invoice, this section applies as if the document were an invoice.

Chapter 4 contains special rules relating to the amount of GST on taxable supplies, as follows:

Checklist of special rules

Item

For this case ...

See:

1A

Agents and insurance brokers

Division 153

1

Associates

Division 72

2

Company amalgamations

Division 90

2A

Compulsory third party schemes

Division 79

3

Gambling

Division 126

4

Long‑term accommodation in commercial residential premises

Division 87

4AA

Non‑residents making supplies connected with the indirect tax zone

Division 83

4A

Offshore supplies

Division 84

5

Sale of freehold interests etc.

Division 75

7

Supplies partly connected with the indirect tax zone

Division 96

8

Transactions relating to insurance policies

Division 78

8A

Valuable metals

Division 86

9

Valuation of taxable supplies of goods in bond

Division 108

10

Excess GST

Division 142

Note: There are other laws that may affect the amount of GST on taxable supplies. For example, see subsection 357‑60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5‑5 in that Schedule).

You are entitled to input tax credits for your creditable acquisitions. This Division defines creditable acquisitions, states who is entitled to the input tax credits and describes how to work out the input tax credits on acquisitions.

(1) You acquire a thing for a creditable purpose to the extent that you acquire it in *carrying on your *enterprise.

(2) However, you do not acquire the thing for a creditable purpose to the extent that:

(a) the acquisition relates to making supplies that would be *input taxed; or

(b) the acquisition is of a private or domestic nature.

(3) An acquisition is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that the supply is made through an *enterprise, or a part of an enterprise, that you *carry on outside the indirect tax zone.

(4) An acquisition is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed if:

(a) the only reason it would (apart from this subsection) be so treated is because it relates to making *financial supplies; and

(b) you do not *exceed the financial acquisitions threshold.

(5) An acquisition is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that:

(a) the acquisition relates to making a *financial supply consisting of a borrowing (other than through a *deposit account you make available); and

(b) the borrowing relates to you making supplies that are not input taxed.

The amount of the input tax credit for a *creditable acquisition is an amount equal to the GST payable on the supply of the thing acquired. However, the amount of the input tax credit is reduced if the acquisition is only *partly creditable.

Note: The basic rule for working out the GST payable on the supply is in Subdivision 9‑C. However, the GST payable may be affected by other provisions in:

(a) this Act (for a list of provisions, see section 9‑99); and

(b) other GST laws (for example, see subsection 357‑60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5‑5 in that Schedule)).

(1) An acquisition that you make is partly creditable if it is a *creditable acquisition to which one or both of the following apply:

(a) you make the acquisition only partly for a *creditable purpose;

(b) you provide, or are liable to provide, only part of the *consideration for the acquisition.

(3) The amount of the input tax credit on an acquisition that you make that is *partly creditable is as follows:

where:

extent of consideration is the extent to which you provide, or are liable to provide, the *consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition.

extent of creditable purpose is the extent to which the *creditable acquisition is for a *creditable purpose, expressed as a percentage of the total purpose of the acquisition.

full input tax credit is what would have been the amount of the input tax credit for the acquisition if it had been made solely for a creditable purpose and you had provided, or had been liable to provide, all of the consideration for the acquisition.

(4) For the purpose of working out the extent of the *consideration, so far as the consideration is not expressed as an amount of *money, take into account the *GST inclusive market value of the consideration.

(5) The Commissioner may determine, in writing, one or more ways in which to work out, for the purpose of subsection (3), the extent to which a *creditable acquisition is for a *creditable purpose.

GST is payable on taxable importations. This Division defines taxable importations, states who is liable for the GST and describes how to work out the GST on importations.

Note 1: This Division applies whether or not you are registered.

Note 2: Things other than goods that are supplied overseas for use in the indirect tax zone (and are therefore in that sense “imported”) are not taxable importations, but they can attract GST under Subdivision 84‑A.

(1) The amount of GST on the *taxable importation is 10% of the *value of the taxable importation.

(2) The value of a *taxable importation is the sum of:

(a) the *customs value of the goods imported; and

(b) the amount paid or payable:

(i) for the *international transport of the goods to their *place of consignment in the indirect tax zone; and

(ii) to insure the goods for that transport;

to the extent that the amount is not already included under paragraph (a); and

(ba) the amount paid or payable for a supply to which item 5A in the table in subsection 38‑355(1) applies, to the extent that the amount:

(i) is not an amount, the payment of which (or the discharging of a liability to make a payment of which), because of Division 81 or regulations made under that Division, is not the provision of *consideration; and

(c) any *customs duty payable in respect of the importation of the goods; and

(d) any *wine tax payable in respect of the *local entry of the goods.

(2A) If an amount to be taken into account under paragraph (2)(b) or (ba) is not an amount in Australian currency, the amount so taken into account is the equivalent in Australian currency of that amount, ascertained in the way provided in section 161J of the Customs Act 1901.

(3) The Commissioner may, in writing:

(a) determine the way in which the amount paid or payable for a specified kind of transport or insurance is to be worked out for the purposes of paragraph (2)(b); and

(b) determine the way in which the amount paid or payable for a specified kind of supply referred to in paragraph (2)(ba) is to be worked out for the purposes of that paragraph; and

(c) in relation to importations of a specified kind or importations to which specified circumstances apply—determine that:

(i) the amount paid or payable for a specified kind of transport or insurance is taken, for the purposes of paragraph (2)(b), to be zero; or

(ii) the amount paid or payable for a specified kind of supply referred to in paragraph (2)(ba) is taken, for the purposes of that paragraph, to be zero.

(4) For a *taxable importation that you make, you may choose to treat the amount under paragraph (2)(b), (or, if paragraph (2)(ba) applies, the sum of the amounts under paragraphs (2)(b) and (ba)), as an amount equal to:

(a) the percentage prescribed by the regulations of the *customs value of the goods imported; or

(b) if no percentage is prescribed—10% of their customs value.

(5) However, subsection (4) does not apply if:

(a) you are not *registered; or

(b) the *local entry of the goods is a *taxable dealing in relation to *wine; or

(c) the importation of the goods is a *taxable importation of a luxury car.

the value of the part of the actual importation that is a taxable importation is the proportion of the value of the actual importation (worked out as if it were solely a taxable importation) that the taxable importation represents.

Note: There are other laws that may affect the amount of GST on taxable importations. For example, see subsection 357‑60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5‑5 in that Schedule).

You are entitled to input tax credits for your creditable importations. This Division defines creditable importations, states who is entitled to the input tax credits and describes how to work out the input tax credits on importations.

(1) You import goods for a creditable purpose to the extent that you import the goods in *carrying on your *enterprise.

(2) However, you do not import the goods for a creditable purpose to the extent that:

(a) the importation relates to making supplies that would be *input taxed; or

(b) the importation is of a private or domestic nature.

(3) An importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that the supply is made through an *enterprise, or a part of an enterprise, that you *carry on outside the indirect tax zone.

(4) An importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed if:

(a) the only reason it would (apart from this subsection) be so treated is because it relates to making *financial supplies; and

(b) you do not *exceed the financial acquisitions threshold.

(5) An importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that:

(a) the importation relates to making a *financial supply consisting of a borrowing; and

(b) the borrowing relates to you making supplies that are not input taxed.

The amount of input tax credit for a *creditable importation is an amount equal to the GST payable on the importation. However, the amount of the input tax credit is reduced if the importation is only *partly creditable.

Note: The basic rule for working out the GST payable on the importation is in section 13‑20. However, the GST payable may be affected by other provisions in:

(a) this Act (for a list of provisions, see section 13‑99); and

(b) other GST laws (for example, see subsection 357‑60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5‑5 in that Schedule)).

(1) The Commissioner may make a determination that, in the circumstances specified in the determination, a *net amount for a tax period may be worked out to take account of other matters in the way specified in the determination.

(2) The matters must relate to correction of errors that were made in working out *net amounts for tax periods to which subsection (2A) applies.

(2A) This subsection applies to a *net amount for a tax period (the earlier tax period) if:

(a) the earlier tax period precedes the tax period mentioned in subsection (1); and

(b) the tax period mentioned in subsection (1) starts during the *period of review for the *assessment of the *net amount.

(3) If those circumstances apply in relation to a tax period applying to you, you may work out your *net amount for the tax period in that way.

Adjustments can arise because of adjustment events. They are events such as a cancellation of a supply or acquisition, or a change in the consideration for a supply or acquisition (for example, because of a volume discount).

(c) causing a supply or acquisition to become, or stop being, a *taxable supply or *creditable acquisition.

Example: If goods that are supplied for export are not exported within the time provided in section 38‑185, the supply is likely to become a taxable supply after originally being a supply that was GST‑free.

(2) Without limiting subsection (1), these are *adjustment events:

(a) the return to a supplier of a thing, or part of a thing, supplied (whether or not the return involves a change of ownership of the thing);

(b) a change to the previously agreed *consideration for a supply or acquisition, whether due to the offer of a discount or otherwise;

(c) a change in the extent to which an entity that makes an acquisition provides, or is liable to provide, consideration for the acquisition (unless the entity *accounts on a cash basis).

(3) An *adjustment event:

(a) can arise in relation to a supply even if it is not a *taxable supply; and

(b) can arise in relation to an acquisition even if it is not a *creditable acquisition.

(4) However, the return of a thing supplied, or part of a thing supplied, to its supplier is not an *adjustment event if the return is for the purpose of repair or maintenance.

You have an adjustment for a supply for which you are liable to pay GST (or would be liable to pay GST if it were a *taxable supply) if:

(a) in relation to the supply, one or more *adjustment events occur during a tax period; and

(b) GST on the supply was attributable to an earlier tax period (or, if the supply was not a taxable supply, would have been attributable to an earlier tax period had the supply been a taxable supply); and

(c) as a result of those adjustment events, the *previously attributed GST amount for the supply (if any) no longer correctly reflects the amount of GST (if any) on the supply (the corrected GST amount), taking into account any change of circumstances that has given rise to an adjustment for the supply under this Subdivision or Division 21 or 134.

If the *corrected GSTamount is greater than the *previously attributed GST amount, you have an increasing adjustment equal to the difference between the corrected GST amount and the previously attributed GST amount.

If the *corrected GST amount is less than the *previously attributed GST amount, you have a decreasing adjustment equal to the difference between the previously attributed GST amount and the corrected GST amount.

(1) You have an adjustment for an acquisition for which you are entitled to an input tax credit (or would be entitled to an input tax credit if the acquisition were a *creditable acquisition) if:

(a) in relation to the acquisition, one or more *adjustment events occur during a tax period; and

(b) an input tax credit on the acquisition was attributable to an earlier tax period (or, if the acquisition was not a creditable acquisition, would have been attributable to an earlier tax period had the acquisition been a creditable acquisition); and

(c) as a result of those adjustment events, the *previously attributed input tax credit amount for the acquisition (if any) no longer correctly reflects the amount of the input tax credit (if any) on the acquisition (the corrected input tax credit amount).

(2) In working out the *corrected input tax credit amount for the acquisition:

(a) take into account any change of circumstances that has given rise to an adjustment for the acquisition under this Subdivision or Division 21, 129, 133 or 134; and

(b) if an adjustment relating to the acquisition under Division 131 was attributable to an earlier tax period:

(i) do not take into account that adjustment; and

(ii) treat the acquisition as one in relation to which Division 131 had not applied.

If the *previously attributed input tax credit amount is greater than the *corrected input tax credit amount, you have an increasing adjustment equal to the difference between the previously attributed input tax credit amount and the corrected input tax credit amount.

If the *previously attributed input tax credit amount is less than the *corrected input tax credit amount, you have a decreasing adjustment equal to the difference between the corrected input tax credit amount and the previously attributed input tax credit amount.

If debts are written off as bad or are outstanding after 12 months, adjustments (for the purpose of working out net amounts) are made. They can arise both for amounts written off or outstanding and for recovery of amounts previously written off or outstanding.

Note: This Division does not apply to supplies and acquisitions that you account for on a cash basis (except in the limited circumstances referred to in Division 159).

(a) you made a *creditable acquisition in relation to which you had an *increasing adjustment under section 21‑15 for a debt; and

(b) you pay to the supplier of the thing you acquired the whole or a part of the amount written off, or the whole or a part of the amount that has been *overdue for 12 months or more, as the case requires.

The amount of the decreasing adjustment is 1/11 of the amount recovered.

Despite section 23‑5, you are treated as not having been *required to be registered under this Act on a day if your *registration could not take effect from that day because of subsection 25‑10(1A).

Note: Subsection 25‑10(1A) provides that the date of effect of your registration must not be a day that occurred more than 4 years before the day of the Commissioner’s decision to register you, unless the Commissioner is of the opinion there has been fraud or evasion.

(b) the Commissioner is satisfied that you are *carrying on an *enterprise, or you intend to carry on an enterprise from a particular date specified in your application.

Note: Refusing to register you under this subsection is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

(2) The Commissioner must *register you (even if you have not applied for registration) if the Commissioner is satisfied that you are *required to be registered.

Note: Registering you under this subsection is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

(3) The Commissioner must notify you in writing of any decision he or she makes in relation to you under this section. If the Commissioner decides to register you, the notice must specify the following:

(1) The Commissioner must decide the date from which your *registration takes effect, or took effect. However:

(a) if you did not apply for registration and the Commissioner is satisfied that you are *required to be registered—the date of effect must not be a day before the day on which you became required to be registered; or

(b) if you applied for registration—the date of effect must not be a day before:

(i) the day specified in your application; or

(ii) if the Commissioner is satisfied that you became required to be registered on an earlier day—the day that the Commissioner is satisfied is that earlier day; or

(c) if you are being registered only because you intend to *carry on an *enterprise—the date of effect must not be a day before the day specified, in your application for registration, as the day from which you intend to carry on the enterprise.

Note: Deciding the date of effect of your registration is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

(1A) The date of effect must not be a day that occurred more than 4 years before the day of the decision, unless the Commissioner is of the opinion there has been fraud or evasion.

(2) The *Australian Business Registrar must enter in the *Australian Business Register the date on which your *registration takes or took effect.

If the Commissioner decides under section 25‑10, as the date of effect of your *registration (your registration day), a day before the day of the decision, then you are taken:

(a) for the purpose of determining whether a supply you made on or after your registration day was a *taxable supply; and

(b) for the purpose of determining whether an acquisition you made on or after that day was a *creditable acquisition; and

(c) for the purpose of determining whether an importation you made on or after that day was a *creditable importation;

to have been registered from and including your registration day.

Note: This section ensures that backdating your registration enables your supplies and acquisitions made on or after the date of effect to be picked up by the GST system. Section 25‑10 limits the extent to which your registration can be backdated.

If you are *registered and you are not *carrying on any *enterprise, you must apply to the Commissioner in the *approved form for cancellation of your *registration. You must lodge your application within 21 days after the day on which you ceased to be carrying on any *enterprise.

(3) The Commissioner must notify you of any decision he or she makes in relation to you under this section. If the Commissioner decides to cancel your registration, the notice must specify the date of effect of the cancellation.

(a) less than 12 months after being registered, you apply for cancellation of registration in the *approved form; and

(b) the Commissioner is satisfied that you are not *required to be registered.

Note: Refusing to cancel your registration under this subsection is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

(2) In considering your application, the Commissioner may have regard to:

(a) how long you have been *registered; and

(b) whether you have previously been registered; and

(c) any other relevant matters.

(3) The Commissioner must notify you of any decision he or she makes in relation to you under this section. If the Commissioner decides to cancel your registration, the notice must specify the date of effect of the cancellation.

(1) The Commissioner must decide the date on which the cancellation of your *registration under subsection 25‑55(1) or (2) or section 25‑57 takes effect. That date may be any day occurring before, on or after the day on which the Commissioner makes the decision.

Note: Deciding the date of effect of the cancellation of your registration is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

(2) The *Australian Business Registrar must enter in the *Australian Business Register the date on which the cancellation of your *registration takes effect.

If the Commissioner decides under section 25‑60, as the date of effect of the cancellation of your *registration (your cancellation day), a day before the day of the decision, your registration is taken:

(a) for the purpose of determining whether a supply you made on or after your cancellation day was a *taxable supply; and

(b) for the purpose of determining whether an acquisition you made on or after that day was a *creditable acquisition; and

(c) for the purpose of determining whether an importation you made on or after that date was a *creditable importation;

(1) The Commissioner must determine that the tax periods that apply to you are each individual month if:

(a) the Commissioner is satisfied that your *GST turnover meets the *tax period turnover threshold; or

(b) the Commissioner is satisfied that the period for which you will be *carrying on an *enterprise in the indirect tax zone is less than 3 months; or

(c) the Commissioner is satisfied that you have a history of failing to comply with your obligations under a *taxation law.

Note: Determining under this section the tax periods applying to you is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

(2) The determination takes effect on the day specified in the determination. However, the day specified must be 1 January, 1 April, 1 July or 1 October.

Note: Deciding the date of effect of the determination is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

(3) The tax period turnover threshold is:

(a) $20 million; or

(b) such other amount as the regulations specify.

However, if the regulations change the tax period turnover threshold, the change does not apply to you until the start of the next tax period that starts after the regulation in question comes into operation.

(1) The Commissioner may, if you so request in the *approved form, revoke your election under section 27‑10, with effect from a day occurring earlier than 12 months after the election took effect, unless the Commissioner is satisfied that your *GST turnover meets the *tax period turnover threshold.

Note: Refusing to revoke your election under this subsection is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

(2) In considering your request, the Commissioner may have regard to:

(a) for how long the tax periods applying to you have been each individual month; and

(b) whether you have previously been *registered, and whether such tax periods had applied to you; and

(c) any other relevant matters.

(3) The revocation:

(a) takes effect on the day specified in the instrument of revocation; or

(b) is taken to have had effect from a past day specified in the instrument of revocation.

However, the day specified must be 1 January, 1 April, 1 July or 1 October.

Note: Deciding the date of effect of the revocation is a reviewable decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

(1) The Commissioner must revoke a determination under section 27‑15 relating to you if you so request, unless the Commissioner is satisfied that any of the grounds for making a determination under that section apply to you.

Note: Refusing to revoke a determination under this section is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

(2) The revocation takes effect on the day specified in the instrument of revocation. However, the day specified:

(a) must be 1 January, 1 April, 1 July or 1 October; and

(b) must not be a day occurring earlier than 12 months after the determination took effect.

Note: Deciding the date of effect of the revocation is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

(1) The Commissioner may, in accordance with a request you make in the *approved form, determine the tax periods applying to you to be the tax periods specified in the request if the Commissioner is satisfied that:

(a) your *GST turnover meets the *tax period turnover threshold; and

(b) the tax periods specified in the request are consistent with the commercial accounting periods that apply to you; and

(c) the tax periods specified in the request would, if determined under this section, result in 12 complete tax periods in each year; and

(d) any other requirements specified in the regulations are complied with.

Note: Refusing a request for a determination under this section is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

(2) A determination under this section overrides any determination under section 27‑15 or 27‑30 relating to tax periods applying to you.

(1) If an entity becomes an *incapacitated entity, the entity’s tax period at the time is taken to have ended at the end of the day before the entity became incapacitated.

(2) If a tax period (the first tax period) ends on a particular day because of subsection (1), the next tax period starts on the day after that day and ends when the first tax period would have ended but for that subsection.

This Division tells you the tax periods to which your taxable supplies, creditable acquisitions, creditable importations and adjustments are attributable. You need to know this to work out your net amounts under Part 2‑4.

Note: This Division does not deal with your taxable importations, because they are not attributed to tax periods. See section 33‑15 for payment of assessed GST on taxable importations.

(1) The input tax credit to which you are entitled for a *creditable acquisition is attributable to:

(a) the tax period in which you provide any of the *consideration for the acquisition; or

(b) if, before you provide any of the consideration, an *invoice is issued relating to the acquisition—the tax period in which the invoice is issued.

(2) However, if you *account on a cash basis, then:

(a) if, in a tax period, you provide all of the *consideration for a *creditable acquisition—the input tax credit for the acquisition is attributable to that tax period; or

(b) if, in a tax period, you provide part of the consideration—the input tax credit for the acquisition is attributable to that tax period, but only to the extent that you provided the consideration in that tax period; or

(c) if, in a tax period, none of the consideration is provided—none of the input tax credit for the acquisition is attributable to that tax period.

(3) If you do not hold a *tax invoice for a *creditable acquisition when you give to the Commissioner a *GST return for the tax period to which the input tax credit (or any part of the input tax credit) on the acquisition would otherwise be attributable:

(a) the input tax credit (including any part of the input tax credit) is not attributable to that tax period; and

(b) the input tax credit (or part) is attributable to the first tax period for which you give to the Commissioner a GST return at a time when you hold that tax invoice.

However, this subsection does not apply in circumstances of a kind determined in writing by the Commissioner to be circumstances in which the requirement for a tax invoice does not apply.

For the giving of GST returns to the Commissioner, see Division 31.

(4) If the *GST return for a tax period does not take into account an input tax credit attributable to that tax period:

(a) the input tax credit is not attributable to that tax period; and

(b) the input tax credit is attributable to the first tax period for which you give the Commissioner a GST return that does take it into account.

Note: Section 93‑5 or 93‑15 may provide a time limit on your entitlement to an input tax credit.

(1) An *adjustment that you have is attributable to the tax period in which you become aware of the adjustment.

(2) However, if you *account on a cash basis, and the *adjustment arises from an *adjustment event as a result of which you are liable to provide *consideration, then:

(a) if, in a tax period, all of the consideration is provided—the *adjustment is attributable to that tax period; or

(b) if, in a tax period, part of the consideration is provided—the adjustment is attributable to that tax period, but only to the extent that the consideration is provided in that tax period; or

(c) if, in a tax period, none of the consideration is provided—none of the adjustment is attributable to that tax period.

(3) If:

(a) you have a *decreasing adjustment arising from an *adjustment event; and

(b) you do not hold an *adjustment note for the adjustment when you give to the Commissioner a *GST return for the tax period to which the adjustment (or any part of the adjustment) would otherwise be attributable;

then:

(c) the adjustment (including any part of the adjustment) is not attributable to that tax period; and

(d) the adjustment (or part) is attributable to the first tax period for which you give to the Commissioner a GST return at a time when you hold that adjustment note.

However, this subsection does not apply in circumstances of a kind determined in writing by the Commissioner to be circumstances in which the requirement for an adjustment note does not apply.

(1) The Commissioner may, in writing, determine the tax periods to which:

(a) GST on *taxable supplies of a specified kind; or

(b) input tax credits for *creditable acquisitions of a specified kind; or

(c) input tax credits for *creditable importations of a specified kind; or

(d) *adjustments of a specified kind;

are attributable.

(2) However, the Commissioner must not make a determination under this section unless satisfied that it is necessary to prevent the provisions of this Division and Chapter 4 applying in a way that is inappropriate in circumstances involving:

(a) a supply or acquisition in which possession of goods passes, but title in the goods will, or may, pass at some time in the future; or

(b) a supply or acquisition for which payment is made or an *invoice is issued, but use, enjoyment or passing of title will, or may, occur at some time in the future; or

(c) a supply or acquisition occurring, but still being subject to a statutory cooling off period under an *Australian law; or

(d) a supply or acquisition occurring before the supplier or *recipient knows it has occurred; or

(e) a supply or acquisition occurring before the supplier or recipient knows the total *consideration; or

(f) a supply or acquisition made under a contract that is subject to preconditions; or

(g) a supply or acquisition made under a contract that provides for retention of some or all of the consideration until certain conditions are met; or

(h) a supply or acquisition for which the GST treatment will be unknown until a later supply is made.

(3) Determinations under subsection (1) override the provisions of this Division (except this section) and Chapter 4, but only to the extent of any inconsistency.

(1) You may choose to *account on a cash basis, with effect from the first day of the tax period that you choose, if:

(a) you are a *small business entity (other than because of subsection 328‑110(4) of the *ITAA 1997) for the *income year in which you make your choice; or

(ab) you do not carry on a *business and your *GST turnover does not exceed the *cash accounting turnover threshold; or

(b) for income tax purposes, you account for your income using the receipts method; or

(c) each of the *enterprises that you *carry on is an enterprise of a kind that the Commissioner determines, in writing, to be a kind of enterprise in respect of which a choice to *account on a cash basis may be made under this section.

(a) you apply to the Commissioner in the *approved form for permission to account on a cash basis; and

(b) the Commissioner is satisfied that, having regard to:

(i) the nature and size of the *enterprise that you *carry on; and

(ii) the nature of the accounting system that you use;

it is appropriate to permit you to account on a cash basis.

Note: Refusing to permit you to account on a cash basis is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

(2) The Commissioner must notify you in writing of any decision he or she makes in relation to you under this section. If the Commissioner decides to permit you to *account on a cash basis, the notice must specify the date of effect of your permission.

Note: Deciding the date of effect of your permission to account on a cash basis is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

(a) in a case to which paragraph 29‑40(1)(a) applied—you are not a *small business entity of the kind referred to in that paragraph for an *income year and you do not have permission to *account on a cash basis; or

(ab) in a case to which paragraph 29‑40(1)(ab) applied—you do not satisfy the requirements of that paragraph and you do not have permission to account on a cash basis; or

(b) you notify the Commissioner, in the *approved form, that you are ceasing to *account on a cash basis.

(2) The date of effect of your cessation is the first day of the next tax period to commence after:

(a) if paragraph (1)(a) applies—the start of the *income year referred to in that paragraph; or

(b) if paragraph (1)(ab) applies—you do not satisfy the requirements of paragraph 29‑40(1)(ab); or

(c) if paragraph (1)(b) applies—you notify the Commissioner.

(3) The Commissioner must revoke any permission for you to *account on a cash basis if the Commissioner is satisfied that:

(a) either:

(i) you carry on a *business but you are not a *small business entity (other than because of subsection 328‑110(4) of the *ITAA 1997) for an *income year; or

(ii) you do not carry on a business and your *GST turnover meets the *cash accounting turnover threshold; and

(4) The Commissioner must notify you in writing of his or her decision under subsection (3). The notice must specify the date of effect of the revocation, which can be the first day of any tax period starting before, on or after the day on which the Commissioner makes the decision.

Note: Deciding the date of effect of the revocation of your permission to account on a cash basis is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

(1) A tax invoice is a document that complies with the following requirements:

(a) it is issued by the supplier of the supply or supplies to which the document relates, unless it is a *recipient created tax invoice (in which case it is issued by the *recipient);

(b) it is in the *approved form;

(c) it contains enough information to enable the following to be clearly ascertained:

(i) the supplier’s identity and the supplier’s *ABN;

(ii) if the total *price of the supply or supplies is at least $1,000 or such higher amount as the regulations specify, or if the document was issued by the recipient—the recipient’s identity or the recipient’s ABN;

(iii) what is supplied, including the quantity (if applicable) and the price of what is supplied;

(iv) the extent to which each supply to which the document relates is a *taxable supply;

(v) the date the document is issued;

(vi) the amount of GST (if any) payable in relation to each supply to which the document relates;

(vii) if the document was issued by the recipient and GST is payable in relation to any supply—that the GST is payable by the supplier;

(viii) such other matters as the regulations specify;

(d) it can be clearly ascertained from the document that the document was intended to be a tax invoice or, if it was issued by the recipient, a recipient created tax invoice.

Note: If the recipient is a member of a GST group, section 48‑57 may relax the requirements relating to the recipient’s identity or the recipient’s ABN.

(1A) A document issued by an entity to another entity may be treated by the other entity as a *tax invoice for the purposes of this Act if:

(a) it would comply with the requirements for a tax invoice but for the fact that it does not contain certain information; and

(b) all of that information can be clearly ascertained from other documents given by the entity to the other entity.

Note: The requirements for a tax invoices are primarily contained in subsection (1), but can be affected by sections 48‑57 and 54‑50.

(1B) However, the Commissioner may treat as a *tax invoice a particular document that would not, apart from this subsection, be a tax invoice.

(2) The supplier of a *taxable supply must, within 28 days after the *recipient of the supply requests it, give to the recipient a *tax invoice for the supply, unless it is a *recipient created tax invoice.

(3) A recipient created tax invoice is a *tax invoice belonging to a class of tax invoices that the Commissioner has determined in writing may be issued by the *recipient of a *taxable supply.

(1) An adjustment note for an *adjustment that arises from an *adjustment event relating to a *taxable supply:

(a) must be issued by the supplier of the *taxable supply in the circumstances set out in subsection (2); and

(b) must set out the *ABN of the entity that issues it; and

(c) must contain such other information as the Commissioner determines in writing; and

(d) must be in the *approved form.

However, the Commissioner may treat as an adjustment note a particular document that is not an adjustment note.

(2) The supplier of the *taxable supply must:

(a) within 28 days after the *recipient of the supply requests the supplier to give an *adjustment note for the *adjustment relating to the supply; or

(b) if the supplier has issued a *tax invoice in relation to the supply (or the recipient has requested one) and the supplier becomes aware of the adjustment before an adjustment note is requested—within 28 days after becoming aware of that fact;

give to the recipient an *adjustment note for the *adjustment, unless any *tax invoice relating to the supply would have been a *recipient created tax invoice (in which case it must be issued by the recipient).

(3) However, in circumstances that the Commissioner determines in writing, paragraph (2)(b) has effect as if the number of days referred to in that paragraph is the number of days specified in the determination in relation to those circumstances.

(4) Those circumstances may, for example, include the kind of the *taxable supply.

(1) Subsections 29‑10(3) and 29‑70(2) do not apply to a *creditable acquisition that relates to a *taxable supply the *value of which does not exceed $50, or such higher amount as the regulations specify.

(2) Subsections 29‑20(3) and 29‑75(2) do not apply to a *decreasing adjustment of an amount that does not exceed $50, or such higher amount as the regulations specify.

(1) If a tax period applying to you is a *quarterly tax period, you must give your *GST return for the tax period to the Commissioner:

(a) as provided in the following table; or

(b) within such further period as the Commissioner allows.

When quarterly GST returns must be given

Item

If this day falls within the quarterly tax period …

Give the GST return to the Commissioner on or before this day:

1

1 September

the following 28 October

2

1 December

the following 28 February

3

1 March

the following 28 April

4

1 June

the following 28 July

(2) A tax period is a quarterly tax period if:

(a) it is a period of 3 months; or

(b) it would be a period of 3 months but for the application of section 27‑30 or 27‑35.

Note: Under section 27‑30, a tax period can be determined to take account of changes in tax periods. Under section 27‑35, the start or finish of a 3 month tax period can vary by up to 7 days from the start or finish of a normal quarter.

(1) You must, if required by the Commissioner, whether before or after the end of a tax period, give to the Commissioner, within the time required, a *GST return or a further or fuller GST return for the tax period or a specified period, whether or not you have given the Commissioner a GST return for the tax period under section 31‑5.

(2) The *approved form for a further or fuller *GST return may require information to be provided relating to:

(a) the tax period to which the return relates; or

(b) one or more preceding tax periods; or

(c) both the tax period to which the return relates, and one or more preceding tax periods.

(2) However, if your *GST turnover meets the *electronic lodgment turnover threshold, you must give your *GST returns to the Commissioner by *lodging them electronically, unless the Commissioner otherwise approves.

This Division is about your obligation to pay to the Commonwealth amounts of GST that remain after off‑setting your entitlements to input tax credits. The obligation to pay arises for any of your assessed net amounts that are greater than zero.

Note 1A: For provisions about assessment (including self‑assessment), see Division 155 in Schedule 1 to the Taxation Administration Act 1953.

Note 1: For the penalties for failing to comply with these obligations, see the Taxation Administration Act 1953.

Note 2: For provisions about collection and recovery of GST, see Subdivision 105‑C, and Part 4‑15, in Schedule 1 to the Taxation Administration Act 1953.

Note 3: Payments of GST on importations of goods are dealt with separately in section 33‑15 of this Act.

Note 4: For taxable supplies of new residential premises or potential residential land, section 14‑250 in Schedule 1 to the Taxation Administration Act 1953 may require the recipient to pay to the Commissioner an amount representing the GST on the supply, and the supplier is then entitled to a credit for that payment under section 18‑60 in that Schedule.

(1) If the *assessed net amount for a tax period (other than a *quarterly tax period) applying to you is greater than zero, you must pay the assessed net amount to the Commissioner on or before the 21st day of the month following the end of that tax period.

(2) However, if the tax period ends during the first 7 days of a month, you must pay the *assessed net amount to the Commissioner on or before the 21st day of that month.

(1) You may pay by *electronic payment any *assessed net amounts payable by you. Any amounts of an assessed net amount that you do not pay by electronic payment must be paid in the manner determined in writing by the Commissioner.

(2) However, if your *GST turnover meets the *electronic lodgment turnover threshold, you must pay by *electronic payment any *assessed net amounts payable by you.

Note 1: A penalty applies if you fail to pay electronically as required—see section 288‑20 in Schedule 1 to the Taxation Administration Act 1953.

Note 2: You must also pay other tax debts electronically—see section 8AAZMA in that Act.

This Division is about the Commissioner’s obligation to pay to you your entitlements to input tax credits that remain after off‑setting amounts of GST. The obligation to pay arises for any of your assessed net amounts that are less than zero.

(1) If the *assessed net amount for a tax period is less than zero, the Commissioner must, on behalf of the Commonwealth, pay that amount (expressed as a positive amount) to you.

Note 1: See Division 3A of Part IIB of the Taxation Administration Act 1953 for the rules about how the Commissioner must pay you. Division 3 of Part IIB allows the Commissioner to apply the amount owing as a credit against tax debts that you owe to the Commonwealth.

Note 2: Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commissioner is late in refunding the amount.

(2) However, if:

(a) the Commissioner amends the *assessment of your *net amount; and

(b) your *assessed net amount before the amendment was less than zero; and

(c) the amount that, because of the assessment, was:

(i) paid; or

(ii) applied under the Taxation Administration Act 1953;

exceeded the amount (including a nil amount) that would have been payable or applicable had your assessed net amount always been the later assessed net amount;

the amount of the excess is to be treated as if:

(d) the excess were an assessed net amount for the tax period; and

(e) that assessed net amount were an amount greater than zero and equal to the amount of the excess; and

(f) despite Division 33, that assessed net amount became payable, and due for payment, by you at the time when the amount was paid or applied.

Note: Treating the excess as if it were an assessed net amount has the effect of applying the collection and recovery rules in Part 3‑10 in Schedule 1 to the Taxation Administration Act 1953, such as a liability to pay the general interest charge under section 105‑80 in that Schedule.

Your entitlement to be paid an amount under section 35‑5 arises when the Commissioner gives you notice of the *assessment of your *net amount for the tax period.

Note: In certain circumstances, the Commissioner is treated as having given you notice of the assessment when you give to the Commissioner your GST return (see section 155‑15 in Schedule 1 to the Taxation Administration Act 1953).

(2) However, a supply of a *medical service is not GST‑free under subsection (1) if:

(a) it is a supply of a *professional service rendered in prescribed circumstances within the meaning of regulation 14 of the Health Insurance Regulations made under the Health Insurance Act 1973 (other than the prescribed circumstances set out in regulations 14(2)(ea), (f) and (g)); or

(b) it is rendered for cosmetic reasons and is not a *professional service for which medicare benefit is payable under Part II of the Health Insurance Act 1973.

(3) A supply of goods is GST‑free if:

(a) it is made to an individual in the course of supplying to him or her a *medical service the supply of which is GST‑free; and

(b) it is made at the premises at which the medical service is supplied.

(a) it is a service of a kind specified in the table in this subsection, or of a kind specified in the regulations; and

(b) the supplier is a *recognised professional in relation to the supply of services of that kind; and

(c) the supply would generally be accepted, in the profession associated with supplying services of that kind, as being necessary for the appropriate treatment of the *recipient of the supply.

Health services

Item

Service

1

Aboriginal or Torres Strait Islander health

2

Acupuncture

3

Audiology, audiometry

4

Chiropody

5

Chiropractic

6

Dental

7

Dietary

8

Herbal medicine (including traditional Chinese herbal medicine)

9

Naturopathy

10

Nursing

11

Occupational therapy

12

Optometry

13

Osteopathy

14

Paramedical

15

Pharmacy

16

Psychology

17

Physiotherapy

18

Podiatry

19

Speech pathology

20

Speech therapy

21

Social work

(2) However, a supply of a pharmacy service is not GST‑free under subsection (1) unless it is:

(a) a supply relating to a supply that is GST‑free because of section 38‑50; or

(b) a service of conducting a medication review.

(3) A supply of goods is GST‑free if:

(a) it is made to a person in the course of supplying to the person a service the supply of which is GST‑free under subsection (1) (other than a service referred to in item 8, 9, 12 or 15 of the table in subsection (1)); and

(b) it is made at the premises at which the service is supplied.

(4) A supply of goods is GST‑free if:

(a) it is made to a person in the course of supplying to the person a service referred to in item 8 or 9 of the table in subsection (1); and

(b) it is supplied, and used or consumed, at the premises at which the service is supplied.

(5) A supply is GST‑freeif it is provided by an ambulance service in the course of the treatment of the *recipient of the supply.

(a) it is a supply of services covered by Schedule 1 to the *Quality of Care Principles; and

(b) it is provided through a residential care service (within the meaning of the Aged Care Act 1997); and

(c) the supplier is an approved provider (within the meaning of that Act).

(2) A supply of services is GST‑free if:

(a) the services are provided to one or more aged or disabled people; and

(b) the *Aged Care Minister has determined in writing that the services are of a kind covered by Schedule 1 to the *Quality of Care Principles; and

(c) the supplier receives funding from the Commonwealth, a State or a Territory in connection with the supply.

(3) A supply of services is GST‑free if:

(a) the services are provided to one or more aged or disabled people in a residential setting; and

(b) the *Aged Care Minister has determined in writing that the services are of a kind covered by Schedule 1 to the *Quality of Care Principles; and

(c) the services include, and are only provided to people who require, the services (care services) set out in:

(i) item 2.1 (daily living activities assistance) of Part 2 of that Schedule; or

(ii) item 3.8 (nursing services) of Part 3 of that Schedule.

(3A) Services provided to a resident of a *retirement village are taken, for the purposes of paragraph (3)(a), to be provided in a residential setting if, and only if:

(a) he or she is a resident of a *serviced apartment in the retirement village; and

(b) there is in force a written agreement under which the operator of the retirement village provides daily meals and heavy laundry services to all of the residents of the apartment.

(3B) However, services provided to a resident of a *serviced apartment in a *retirement village are not taken, for the purposes of paragraph (3)(a), to be provided in a residential setting if:

(a) the *Aged Care Minister has determined in writing:

(i) the levels of care services that residents of serviced apartments in retirement villages must require in order for subsection (3) to apply; and

(ii) the way in which the levels of care services required by residents are to be assessed; and

(b) the *Aged Care Secretary has not, in accordance with the determination, assessed the person to whom the services are provided as requiring the levels of care services so determined.

(3C) A determination made for the purposes of paragraph (3B)(a) may be restricted to a specified class of residents of *serviced apartments in *retirement villages.

(4) A supply of accommodation is GST‑free if it is made to a person in the course of making a supply to that person that is GST‑free under subsection (1), (2) or (3).

(4A) A supply is GST‑free if:

(a) it is made to a person who is a person of a kind referred to in paragraph (3)(c); and

(b) it is:

(i) a supply, by way of lease, hire or licence, of *residential premises consisting of a *serviced apartment in a *retirement village; or

(ii) a sale of *real property that is residential premises consisting of a serviced apartment in a retirement village; or

(iii) a supply of an excluded security (within the meaning of the Corporations Act 2001) in respect of which the right to participate in a retirement village scheme (within the meaning of that Act) entitles the person to use or occupy a serviced apartment in a retirement village; and

(c) in a case where:

(i) a determination made for the purposes of paragraph (3B)(a) is in force; and

(ii) the determination is not restricted under subsection (3C) in such a way that the determination excludes the person;

the *Aged Care Secretary has, in accordance with the determination, assessed the person as requiring the levels of care services determined in the determination; and

(d) it is made in connection with one or more supplies, or proposed supplies, to the person that are or will be GST‑free under subsection (3).

(5) However, a supply of services that is covered by an extra services fee within the meaning of Division 35 of the Aged Care Act 1997 is only GST‑free under this section to the extent that the services are covered by Schedule 1 to the *Quality of Care Principles.

(1) A supply of *home care is GST‑free if home care subsidy is payable under Part 3.2 of the Aged Care Act 1997 or Part 3.2 of the Aged Care (Transitional Provisions) Act 1997 to the supplier for the care.

(2) A supply of care is GST‑free if the supplier receives funding under the Home and Community Care Act 1985 in connection with the supply.

(3) A supply of *home care is GST‑free if the supply is of services:

(a) that are provided to one or more aged or disabled people; and

(b) that are of a kind covered by item 2.1 (daily living activities assistance) of Part 2 of Schedule 1 to the *Quality of Care Principles.

(4) A supply of care is GST‑free if:

(a) the supplier receives funding from the Commonwealth, a State or a Territory in connection with the supply; and

(b) the supply of the care is of a kind determined in writing by the *Aged Care Minister to be similar to a supply that is GST‑free because of subsection (2).

A supply of flexible care (within the meaning of section 49‑3 of the Aged Care Act 1997) is GST‑free if flexible care subsidy is payable under Part 3.3 of that Act or Part 3.3 of the Aged Care (Transitional Provisions) Act 1997 to the supplier for the care.

(a) it is covered by Schedule 3 (medical aids and appliances), or specified in the regulations; and

(b) the thing supplied is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability.

(2) A supply is GST‑free if the thing supplied is supplied as a spare part for, and is specifically designed as a spare part for, another thing the supply of which would be GST‑free under subsection (1).

(3) However, a supply is not GST‑free under subsection (1) or (2) if the supplier and the *recipient have agreed that the supply, or supplies of a kind that include that supply, not be treated as GST‑free supplies.

(1) A supply is GST‑free if it is a supply of goods of a kind that the *Health Minister, by determination in writing, declares to be goods the supply of which is GST‑free.

(2) However, a supply is not GST‑free under subsection (1) if the supplier and the *recipient have agreed that the supply, or supplies of a kind that include that supply, not be treated as GST‑free supplies.

(1) A supply of a drug or medicinal preparation is GST‑free if the supply is on prescription and:

(a) under a *State law or a *Territory law in the State or Territory in which the supply takes place, supply of the drug or medicinal preparation is restricted, but may be supplied on prescription; or

(b) the drug or medicinal preparation is a pharmaceutical benefit (within the meaning of Part VII of the National Health Act 1953).

(2) A supply of a drug or medicinal preparation is GST‑free if, under a *State law or a *Territory law in the State or Territory in which it is supplied, the supply of the drug or medicinal preparation to an individual for private or domestic use or consumption is restricted but may be made by:

(a) a *medical practitioner, *dental practitioner or pharmacist; or

(b) any other person permitted by or under that law to do so.

(3) Subsection (2) does not cover the supply of a drug or medicinal preparation of a kind specified in the regulations.

(4) A supply of a drug, medicine or other pharmaceutical item is GST‑free if the supply is on prescription and:

(a) it is supplied as a pharmaceutical benefit (within the meaning of section 91 of the Veterans’ Entitlements Act 1986); and

(b) it is supplied under an approved scheme (within the meaning of that section).

(4A) A supply of a drug, medicine or other pharmaceutical item is GST‑free if the supply is on prescription and:

(a) it is supplied as a pharmaceutical benefit (within the meaning of section 5 of the Military Rehabilitation and Compensation Act 2004); and

(b) it is supplied in accordance with a determination made under paragraph 286(1)(c) of that Act.

(5) A supply of a drug or medicinal preparation is GST‑free if:

(a) the drug or medicinal preparation is an analgesic that has a single active ingredient the supply of which as a drug or medicinal preparation would be GST‑free under subsection (2) if it were supplied in a larger quantity; and

(b) the drug or medicinal preparation is of a kind the supply of which is declared by the *Health Minister to be GST‑free, by determination in writing.

(6) A supply of a drug or medicinal preparation is GST‑free if:

(a) the drug or medicinal preparation is the subject of an approval under paragraph 19(1)(a) of the Therapeutic Goods Act 1989, and any conditions to which the approval is subject have been complied with; or

(b) the drug or medicinal preparation is supplied under an authority under subsection 19(5) of that Act, and the supply is in accordance with any regulations made for the purposes of subsection 19(7) of that Act; or

(ba) the supply of the drug or medicinal preparation is authorised by rules under subsection 19(7A) of that Act; or

(c) the drug or medicinal preparation is exempted from the operation of Part 3 of that Act under regulation 12A of the Therapeutic Goods Regulations.

(7) A supply of a drug or medicinal preparation covered by this section is GST‑free if, and only if:

(a) the drug or medicinal preparation is for human use or consumption; and

(b) the supply is to an individual for private or domestic use or consumption.

(b) the service is the supplier making one or more other supplies of goods or services to an individual; and

(c) at least one of the other supplies is:

(i) wholly or partly *GST‑free under this Subdivision; and

(ii) for settling one or more claims under an *insurance policy of which the insurer is an insurer;

the first‑mentioned supply is GST‑free to the extent that the other supplies mentioned in paragraph (b) are GST‑free under this Subdivision.

Note: For subparagraph (c)(ii), the insurer may be an insurer of the policy because of a portfolio transfer (see section 78‑118).

Compulsory third party scheme operators

(2) If:

(a) a supply is a supply of a service to an *operator of a *compulsory third party scheme; and

(b) the service is the supplier making one or more other supplies of goods or services to an individual; and

(c) at least one of the other supplies is:

(i) wholly or partly *GST‑free under this Subdivision; and

(ii) made under the compulsory third party scheme;

the first‑mentioned supply is GST‑free to the extent that the other supplies mentioned in paragraph (b) are GST‑free under this Subdivision.

Government agencies

(3) If:

(a) a supply is a supply of a service to an *Australian government agency; and

(b) the service is the supplier making one or more other supplies of goods or services to an individual; and

(c) at least one of the other supplies is wholly or partly *GST‑free under this Subdivision;

the first‑mentioned supply is GST‑free to the extent that the other supplies mentioned in paragraph (b) are GST‑free under this Subdivision.

Parties may agree for supply not to be GST‑free

(4) However, a supply is not GST‑free (to any extent) under this section if the supplier and the *recipient have agreed that the supply, or supplies of a kind that include that supply, not be treated as GST‑free supplies.

(1) A supply is GST‑free if it is a supply of an excursion or field trip, but only if the excursion or field trip:

(a) is directly related to the curriculum of an *education course; and

(b) is not predominantly recreational.

(2) However:

(a) if the course is a *tertiary course, a *tertiary residential college course or a *professional or trade course—any supply of accommodation as part of the excursion or field trip is not GST‑free; and

(b) in any case—any supply of *food as part of the excursion or field trip is not GST‑free under this section.

(1) A supply is GST‑free if the supply is the assessment or issue of qualifications for the purpose of:

(a) access to education; or

(b) membership of a professional or trade association; or

(c) registration or licensing for a particular occupation; or

(d) employment.

(2) However, a supply is not GST‑free under subsection (1) unless the supply is carried out by:

(a) a professional or trade association; or

(b) an *education institution; or

(c) an entity that is registered by a training recognition authority of a State or Territory in accordance with the Australian Recognition Framework to provide skill recognition (assessment only) services; or

(1) A supply is GST‑free if it is a supply of child care specified in a determination made under subsection (2).

(2) The *Child Care Minister may, by legislative instrument, determine kinds of child care for the purposes of subsection (1). A kind of child care may only be included in a determination if the supplier of the care is eligible for Commonwealth funding in respect of the kind of care.

(1) The third column of this table sets out supplies that are GST‑free:

GST‑free exports of goods

Item

Topic

These supplies are GST‑free ...

1

Export of goods—general

a supply of goods, but only if the supplier exports them from the indirect tax zone before, or within 60 days (or such further period as the Commissioner allows) after:

(a) the day on which the supplier receives any of the *consideration for the supply; or

(b) if, on an earlier day, the supplier gives an *invoice for the supply—the day on which the supplier gives the invoice.

2

Export of goods—supplies paid for by instalments

a supply of goods for which the *consideration is provided in instalments under a contract that requires the goods to be exported, but only if the supplier exports them from the indirect tax zone before, or within 60 days (or such further period as the Commissioner allows) after:

(a) the day on which the supplier receives any of the final instalment of the consideration for the supply; or

(b) if, on an earlier day, the supplier gives an *invoice for that final instalment—the day on which the supplier gives the invoice.

2A

Export of goods—supplies to associates without consideration

a supply of goods without *consideration to an *associate of the supplier, but only if the supplier exports them from the indirect tax zone.

3

Export of aircraft or ships

a supply of an aircraft or *ship, but only if the recipient of the aircraft or ship exports it from the indirect tax zone under its own power within 60 days (or such further period as the Commissioner allows) after taking physical possession of it.

4

Export of aircraft or ships—paid for by instalments

a supply of an aircraft or *ship for which the *consideration is provided in instalments under a contract that requires the aircraft or ship to be exported, but only if the *recipient exports it from the indirect tax zone before, or within 60 days (or such further period as the Commissioner allows) after, the earliest day on which one or more of the following occurs:

(a) the supplier receives any of the final instalment of the consideration for the supply;

(b) the supplier gives an *invoice for that final instalment;

(c) the supplier delivers the aircraft or ship to the recipient or (at the recipient’s request) to another person.

4A

Export of new recreational boats

a supply of a *ship, but only if:

(a) the ship is a *new recreational boat on the earliest day (the receipt day) on which one or more of the following occurs:

(i) the *recipient takes physical possession of the ship;

(ii) if *consideration for the supply is provided in instalments under a contract that requires the ship to be exported—the supplier receives any of the final instalment;

(iii) if consideration for the supply is provided in instalments under a contract that requires the ship to be exported—the supplier gives an *invoice for the final instalment; and

(b) the supplier or recipient exports the ship from the indirect tax zone within 12 months (or such further period as the Commissioner allows) after the receipt day; and

(c) subsection (6) does not apply at any time during the period:

(i) starting on the receipt day; and

(ii) ending when the supplier or recipient exports the ship.

5

Export of goods that are to be consumed on international flights or voyages

a supply of:

(a) *aircraft’s stores, or spare parts, for use, consumption or sale on an aircraft on a flight that has a destination outside the indirect tax zone; or

(b) *ship’s stores, or spare parts, for use, consumption or sale on a *ship on a voyage that has a destination outside the indirect tax zone;

whether or not part of the flight or voyage involves a journey between places in the indirect tax zone.

6

Export of goods used to repair etc. imported goods

a supply of goods in the course of repairing, renovating, modifying or treating other goods from outside the indirect tax zone whose destination is outside the indirect tax zone, but only if:

(a) the goods are attached to, or become part of, the other goods; or

(b) the goods become unusable or worthless as a direct result of being used to repair, renovate, modify or treat the other goods.

7

Goods exported by travellers as accompanied baggage

a supply of goods to a *relevant traveller, but only if:

(a) the supply is made in accordance with the rules specified in the regulations; and

(b) the goods are exported as accompanied baggage of the relevant traveller.

(2) However, a supply covered by any of items 1 to 6 in the table in subsection (1) is not GST‑free if the supplier reimports the goods into the indirect tax zone.

(3) Without limiting items 1 and 2 in the table in subsection (1), a supplier of goods is treated, for the purposes of those items, as having exported the goods from the indirect tax zone if:

(a) before the goods are exported, the supplier supplies them to an entity that is not *registered or *required to be registered; and

(b) that entity exports the goods from the indirect tax zone; and

(c) the goods have been entered for export within the meaning of section 113 of the Customs Act 1901; and

(d) since their supply to that entity, the goods have not been altered or used in any way, except to the extent (if any) necessary to prepare them for export; and

(e) the supplier has sufficient documentary evidence to show that the goods were exported; and

(f) if that entity is covered by paragraph 168‑5(1A)(c)—the supplier has a declaration by that entity stating that:

(i) a payment has not been sought under section 168‑5 for the supply; and

(ii) if the goods are *wine—a payment has not been sought under section 25‑5 of that Act for the supply.

However, if the goods are reimported into the indirect tax zone, the supply is not GST‑free unless the reimportation is a *taxable importation.

Note: The entity will be covered by paragraph 168‑5(1A)(c) if the entity is an individual who resides in an external Territory.

(4) Without limiting item 2A in the table in subsection (1), a supplier of goods is treated, for the purposes of that item, as having exported the goods from the indirect tax zone if:

(a) before the goods are exported, the supplier supplies them to an entity that:

(i) is an *associate of the supplier; and

(ii) is not *registered or *required to be registered; and

(b) the associate exports the goods from the indirect tax zone within 60 days (or such further period as the Commissioner allows) after the earlier of the following:

(i) the day the goods were delivered in the indirect tax zone to the associate;

(ii) the day the goods were made available in the indirect tax zone to the associate; and

(c) the goods have been entered for export within the meaning of section 113 of the Customs Act 1901; and

(d) since their supply to the associate, the goods have not been altered or used in any way, except to the extent (if any) necessary to prepare them for export; and

(e) the supplier has sufficient documentary evidence to show that the goods were exported; and

(f) if the associate is covered by paragraph 168‑5(1A)(c)—the supplier has a declaration by the associate stating that:

(i) a payment has not been sought under section 168‑5 for the supply; and

(ii) if the goods are *wine—a payment has not been sought under section 25‑5 of that Act for the supply.

However, if the goods are reimported into the indirect tax zone, the supply is not GST‑free unless the reimportation is a *taxable importation.

Note: The associate will be covered by paragraph 168‑5(1A)(c) if the associate is an individual who resides in an external Territory.

Export of new recreational boats

(5) For the purposes of item 4A of the table in subsection (1), the *ship is a new recreational boat if the ship:

(a) has not been substantially reconstructed; and

(b) has not been sold, leased or used since the completion of its construction, except in connection with:

(i) the supply or acquisition of the ship as stock held for the purpose of sale or exchange in *carrying on an *enterprise; or

(ii) the supply mentioned in that item, or the acquisition of the ship by the *recipient as mentioned in that item; and

(c) was designed, and is fitted out, principally for use in activities done as private recreational pursuits or hobbies; and

(d) is not a commercial ship.

(6) For the purposes of item 4A in the table in subsection (1), this subsection applies if, apart from use of the *ship by the supplier in connection with the supply of the ship to the *recipient, the *ship is used:

(a) as security for the performance of an obligation (other than an obligation relating to the acquisition of the ship); or

(b) in *carrying on an *enterprise in the indirect tax zone; or

(c) in the indirect tax zone in carrying on an enterprise outside the indirect tax zone, not including use that involves the ship being used:

(i) in a way that is private or domestic in nature; or

(ii) in an activity, or series of activities, done as a private recreational pursuit or hobby; or

Example: Allowing an employee to live on the ship, or to take the ship on a fishing trip.

(d) for *consideration, unless the consideration:

(i) consists of the provision of services by an employee of an enterprise carried on by the *recipient outside the indirect tax zone; or

(ii) is in respect of the recipient competing in a race or other sporting event (e.g. a prize).

Note: If goods are leased or hired and used partly in the indirect tax zone and partly outside the indirect tax zone, the supply could be taxable to the extent that the goods are used in the indirect tax zone (see section 9‑5).

(1) The third column of this table sets out supplies that are GST‑free (except to the extent that they are supplies of goods or *real property):

Supplies of things, other than goods or real property, for consumption outside the indirect tax zone

Item

Topic

These supplies are GST‑free (except to the extent that they are supplies of goods or *real property)...

1

Supply connected with property outside the indirect tax zone

a supply that is directly connected with goods or real property situated outside the indirect tax zone.

2

Supply to *non‑resident outside the indirect tax zone.

a supply that is made to a *non‑resident who is not in the indirect tax zone when the thing supplied is done, and:

(a) the supply is neither a supply of work physically performed on goods situated in the indirect tax zone when the work is done nor a supply directly connected with *real property situated in the indirect tax zone; or

(b) the *non‑resident acquires the thing in *carrying on the non‑resident’s *enterprise, but is not *registered or *required to be registered.

3

Supplies used or enjoyed outside the indirect tax zone

a supply:

(a) that is made to a *recipient who is not in the indirect tax zone when the thing supplied is done; and

(b) the effective use or enjoyment of which takes place outside the indirect tax zone;

other than a supply of work physically performed on goods situated in the indirect tax zone when the thing supplied is done, or a supply directly connected with *real property situated in the indirect tax zone.

4

Rights

a supply that is made in relation to rights if:

(a) the rights are for use outside the indirect tax zone; or

(b) the supply is to an entity that is not an *Australian resident and is outside the indirect tax zone when the thing supplied is done.

5

Export of services used to repair etc. imported goods

a supply that is constituted by the repair, renovation, modification or treatment of goods from outside the indirect tax zone whose destination is outside the indirect tax zone.

(2) However, a supply covered by any of items 1 to 5 in the table in subsection (1) is not GST‑free if it is the supply of a right or option to acquire something the supply of which would be *connected with the indirect tax zone and would not be *GST‑free.

(2A) A supply covered by any of items 2 to 4 in the table in subsection (1) is not*GST‑free if the acquisition of the supply relates (whether directly or indirectly, or wholly or partly) to the making of a supply of *real property situated in the indirect tax zone that would be, wholly or partly, *input taxed under Subdivision 40‑B or 40‑C.

Note: Subdivision 40‑B deals with the supply of premises (including a berth at a marina) by way of lease, hire or licence. Subdivision 40‑C deals with the sale of residential premises and the supply of residential premises by way of long‑term lease.

(3) Without limiting subsection (2) or (2A), a supply covered by item 2 in that table is not GST‑free if:

(a) it is a supply under an agreement entered into, whether directly or indirectly, with a *non‑resident; and

(b) the supply is provided, or the agreement requires it to be provided, to another entity in the indirect tax zone; and

(c) for a supply other than an *input taxed supply—none of the following applies:

(i) the other entity would be an *Australian‑based business recipient of the supply, if the supply had been made to it;

(ii) the other entity is an individual who is provided with the supply as an employee or *officer of an entity that would be an Australian‑based business recipient of the supply, if the supply had been made to it; or

(iii) the other entity is an individual who is provided with the supply as an employee or officer of the *recipient, and the recipient’s acquisition of the thing is solely for a *creditable purpose and is not a *non‑deductible expense.

(4) A supply is taken, for the purposes of item 3 in that table, to be a supply made to a *recipient who is not in the indirect tax zone if:

(a) it is a supply under an agreement entered into, whether directly or indirectly, with an *Australian resident; and

(b) the supply is provided, or the agreement requires it to be provided, to another entity outside the indirect tax zone.

(5) Subsection (4) does not apply to any of the following supplies:

(a) a transport of goods within the indirect tax zone that is part of, or is connected with, the *international transport of the goods;

(b) a loading or handling of goods within the indirect tax zone that is part of, or is connected with, the international transport of the goods;

(c) a service, done within the indirect tax zone, in relation to the goods that facilitates the international transport of the goods;

Example: The services of a customs broker in processing the information necessary for the clearance of goods into home consumption.

(a) the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and

(b) the supply is for *consideration that:

(i) if the supply is a supply of accommodation—is less than 75% of the *GST inclusive market value of the supply; or

(ii) if the supply is not a supply of accommodation—is less than 50% of the GST inclusive market value of the supply.

(2) A supply is GST‑free if:

(a) the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and

(b) the supply is for *consideration that:

(i) if the supply is a supply of accommodation—is less than 75% of the cost to the supplier of providing the accommodation; or

(ii) if the supply is not a supply of accommodation—is less than 75% of the consideration the supplier provided, or was liable to provide, for acquiring the thing supplied.

(4) Subsections (1) and (2) do not apply to a supply by a *gift‑deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30‑120 of the ITAA 1997, unless:

(a) the supplier is:

(i) an *endorsed charity; or

(ii) a *government school; or

(iii) a fund, authority or institution of a kind referred to in paragraph 30‑125(1)(b) of the ITAA 1997; or

(b) each purpose to which the supply relates is a *gift‑deductible purpose of the supplier.

Note: This subsection denies GST‑free status under this section to supplies by certain (but not all) gift‑deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST‑free under this section if they relate to the principal purpose of the fund, authority or institution.

(a) the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and

(b) the goods were supplied to the endorsed charity, gift‑deductible entity or government school:

(i) as a gift; or

(ii) by way of a supply that was GST‑free because of a previous application of this section.

However, the supply is not GST‑free if the endorsed charity, gift‑deductible entity or government school has dealt with the goods in such a way that the goods no longer have their original character.

(3) Subsection (1) does not apply to a supply by a *gift‑deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30‑120 of the ITAA 1997, unless:

(a) the supplier is:

(i) an *endorsed charity; or

(ii) a *government school; or

(iii) a fund, authority or institution of a kind referred to in paragraph 30‑125(1)(b) of the ITAA 1997; or

(b) each purpose to which the supply relates is a *gift‑deductible purpose of the supplier.

Note: This subsection denies GST‑free status under this section to supplies by certain (but not all) gift‑deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST‑free under this section if they relate to the principal purpose of the fund, authority or institution.

(a) the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and

(b) the supply is:

(i) a supply of a ticket in a raffle; or

(ii) an acceptance of a person’s participation in a game of bingo; or

(iii) a *gambling supply of a kind specified in the regulations; and

(c) the supply does not contravene a *State law or a *Territory law.

(3) Subsection (1) does not apply to a supply by a *gift‑deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30‑120 of the ITAA 1997, unless:

(a) the supplier is:

(i) an *endorsed charity; or

(ii) a *government school; or

(iii) a fund, authority or institution of a kind referred to in paragraph 30‑125(1)(b) of the ITAA 1997; or

(b) each purpose to which the supply relates is a *gift‑deductible purpose of the supplier.

Note: This subsection denies GST‑free status under this section to supplies by certain (but not all) gift‑deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST‑free under this section if they relate to the principal purpose of the fund, authority or institution.

(1) The third column of this table sets out supplies that are GST‑free:

Supplies of transport and related matters

Item

Topic

These supplies are GST‑free ...

1

Transport of passengers to, from or outside the indirect tax zone

the transport of a passenger:

(a) from the last place of departure in the indirect tax zone to a destination outside the indirect tax zone; or

(b) from a place outside the indirect tax zone to the first place of arrival in the indirect tax zone; or

(c) from a place outside the indirect tax zone to the same or another place outside the indirect tax zone.

2

Transport of passengers on domestic legs of international flights

the transport of a passenger within the indirect tax zone by air, but only if:

(a) the transport is part of a wider arrangement, itinerary or contract for transport by air involving international travel; and

(b) at the time the arrangement, itinerary or contract was entered into, the transport within the indirect tax zone formed part of a ticket for international travel, or was cross referenced to such a ticket, issued at that time.

3

Domestic air travel of non‑residents

the transport of a passenger within the indirect tax zone by air, but only if:

(a) the passenger is a *non‑resident; and

(b) the supply was purchased while the passenger was outside the indirect tax zone.

4

Transport of passengers on domestic legs of international sea voyages

the transport of a passenger within the indirect tax zone by sea, but only if:

(a) the transport is part of a journey by sea from the indirect tax zone to a destination outside the indirect tax zone, or from a destination outside the indirect tax zone to the indirect tax zone; and

(b) the transport is provided by the supplier who transports the passenger to or from the indirect tax zone.

5

Transport etc. of goods

subject to subsections (2) and (3), the *international transport of goods:

(a) from their *place of export in the indirect tax zone to a destination outside the indirect tax zone; or

(b) from a place outside the indirect tax zone to their *place of consignment in the indirect tax zone; or

(c) from a place outside the indirect tax zone to the same or another place outside the indirect tax zone.

5A

Loading or handling etc.

subject to subsections (2) and (3):

(a) loading or handling of goods, the *international transport of which is covered by item 5, during the course of the international transport; or

(b) supply of a service, during the course of the international transport of goods covered by item 5, that facilitates the international transport.

6

Insuring transport etc.

subject to subsection (3):

(a) insuring transport covered by item 1, 2, 3 or 4; or

(b) insuring the *international transport of goods from their *place of export in the indirect tax zone to a destination outside the indirect tax zone; or

(c) insuring:

(i) the transport of goods from a place outside the indirect tax zone to their *place of consignment in the indirect tax zone; and

(ii) the subsequent transport of those goods within the indirect tax zone, if it is an integral part of the transport of goods from the place outside the indirect tax zone to the place of consignment in the indirect tax zone;

including loading and handling within the indirect tax zone that is part of that transport; or

(d) insuring the transport of goods from a place outside the indirect tax zone to the same or another place outside the indirect tax zone.

7

Arranging transport etc.

subject to subsection (3):

(a) arranging transport covered by item 1, 2, 3 or 4; or

(b) arranging the *international transport of goods covered by item 5; or

(c) arranging insurance covered by item 6.

(2) Paragraphs (a) and (b) of item 5, and item 5A, in the table in subsection (1) do not apply to a supply to the extent that the thing supplied is done in the indirect tax zone, unless:

(a) the *recipient of the supply:

(i) is a *non‑resident; and

(ii) is not in the indirect tax zone when the thing supplied is done in the indirect tax zone; or

(b) the supply is done by the supplier of the transport of the goods from or to the indirect tax zone (whichever is relevant).

(3) Items 5 and 5A, paragraphs (b) to (d) of item 6, and paragraphs (b) and (c) of item 7, in the table in subsection (1) do not apply to a supply to the extent that:

(a) the supply is, or relates to, the *international transport of goods; and

(b) the supplier is a *redeliverer that is treated as the supplier of the goods under subsection 84‑81(4); and

(1) A supply is GST‑free if it is a supply of a *car to an individual who:

(a) has served in the Defence Force or in any other armed force of Her Majesty; and

(b) as a result of that service:

(i) has lost a leg or both arms; or

(ii) has had a leg, or both arms, rendered permanently and completely useless; or

(iii) is a veteran to whom section 24 of the Veterans’ Entitlements Act 1986 applies and receives a pension under Part II of that Act; or

(iv) is receiving a Special Rate Disability Pension under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004, or satisfies the eligibility criteria in section 199 of that Act; and

(c) intends to use the car in his or her personal transportation during all of the *Subdivision 38‑P period.

(2) However, a supply covered by subsection (1) is not GST‑free to the extent that the *GST inclusive market value of the *car exceeds the *car limit.

(3) In working out the *GST inclusive market value of the *car for the purposes of subsection (2), disregard any value that is attributable to modifications made to the car solely for the purpose of:

(a) adapting it for driving by the person; or

(b) adapting it for transporting the person.

(4) A supply is GST‑free if it is a supply of *car parts that are for a *car for an individual to whom paragraphs (1)(a), (b) and (c) apply.

(a) the supply is to enable the use in the indirect tax zone of a portable device for sending and receiving signals, writing, images, sounds or information by an electromagnetic system while the device is linked to:

(i) an international mobile subscriber identity; or

(ii) an IP address; or

(iii) another internationally recognised identifier;

containing a home network identity that indicates a subscription to a telecommunications network outside the indirect tax zone; and

(b) the supply is covered by subsection (2) or (3).

Supply by non‑resident telecommunications supplier

(2) This subsection covers the supply if:

(a) the supply is made to the subscriber in connection with the subscription; and

(b) the billing of the subscriber for the supply is to an address outside the indirect tax zone; and

(c) the supply is made by a *non‑resident that:

(i) *carries on outside the indirect tax zone an *enterprise of making *telecommunication supplies; and

(ii) does not *carry on in the indirect tax zone such an enterprise.

Supply by Australian resident telecommunications supplier

(3) This subsection covers the supply if:

(a) the supply is made by an *Australian resident that is:

(i) a carrier, or a carriage service provider, as defined in the Telecommunications Act 1997; or

(ii) an internet service provider as defined in Schedule 5 to the Broadcasting Services Act 1992; and

(b) the supply is provided to the user in the indirect tax zone of the device; and

(c) the supply is made to a *non‑resident that:

(i) *carries on outside the indirect tax zone an *enterprise of making *telecommunication supplies; and

(2) The Minister may, by legislative instrument, determine that a specified class of *inbound intangible consumer supplies are GST‑free.

(3) However, the Minister must not make the determination unless:

(a) the *Foreign Minister has advised the Minister in writing that the treatment of the class of supplies under the *GST law would, apart from the determination, be inconsistent with Australia’s international obligations; and

(b) the Minister is satisfied that similar supplies made by *Australian residents would be GST‑free.